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Tuesday September 22nd, 2026

Foreign investors sell Sri Lanka rupee bonds amid depreciation 

ECONOMYNEXT – Foreign investors sold Sri Lanka rupee bonds for the first time in 14 weeks in the week ended on September 18, Central Bank data showed, amid a depreciation of the  rupee currency.

Offshore investors sold a net 7,302 million rupees (US$22.5 million) worth of Sri Lanka rupee bonds after buying for 92 billion rupees (US$280 million) in the previous 13 straight weeks.

The outflows reduced the foreign holdings in government securities to 206.1 billion rupees, down from the  highest figure the Central Bank published in its Weekly Economic Indicators.

Analysts said the net outflows followed the rupee’s depreciation.

The rupee currency’s selling rate fell to a near three-year low of 354 against the U.S. dollar on May 21 before recovering and gaining to the 332 level in the previous week. However, last week it lost grounds and reached 335 per U.S. dollar.

The rupee had been steady for more than three years before the sharp depreciation in May with the Central Bank citing higher oil and vehicle imports amid a lingering conflict in the Middle East. The rupee has fallen 6.7 percent through September 18 this year.

Globally, investors are cautious about economic growth due to the impact of the latest Middle East escalation.

However, the island nation has enjoyed a total inflow of around 64.8 billion rupees into rupee bonds so far this year, following a net inflow of 71.5 billion rupees last year.

The island nation has seen an uptick in inflation in the last five months following a nearly 50 percent hike in fuel prices.

The government reduced fuel prices twice, in the last weeks of June and August.

The Central Bank raised its key monetary policy rate by 100 basis points in May to curb inflationary pressure stemming from higher demand.

Before the May rate hike, the Central Bank kept its key policy rates steady since May 2025 after reducing them by 825 basis points over 24 months since June 2023 and foreign investors have been buying rupee bonds despite slight depreciation in the local currency. (Colombo/September 21/2026)

Sri Lanka’s national inflation rises 8.1-pct in August

ECONOMYNEXT – Sri Lanka’s nation-wide inflation index, as measured by the National Consumer Price Index (NCPI) on a year-on-year basis, was 8.1 percent in August 2026, compared with 7.2 percent in July 2026, data from the state statistics office showed.

The NCPI, an alternative to the widely watched Colombo Consumer Price Index, rose 0.2 percent, in August 2026, registering 223.9, compared to 223.4 in July 2026.

The year-on-year inflation of the food group increased to 6.6 percent in August 2026 from 4.9 percent in July 2026.

The year-on-year inflation of the non-food group increased to 9.3 percent from 9.2 percent over the same period.

The NCPI includes 485 items representing consumption of Sri Lanka households. (Colombo/Sep21/2026)

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Sri Lanka rupee closes at 330.75/90 to US dollar spot, bond yields flat

ECONOMYNEXT – Sri Lanka’s rupee closed at 330.75/90 to the US dollar in the spot market on Monday, improving from 330.75/331.25 the previous day, while bond yields closed flat, dealers said.

A bond maturing on 15.09.2027 closed flat at 9.85/10.00 percent.

A bond maturing on 15.12.2028 closed flat at 10.50/70 percent.

A bond maturing on 15.12.2029 closed at 10.85/95 percent.

A bond maturing on 01.08.2030 closed at 11.15/20 percent, down from 11.20/25 percent.

A bond maturing on 01.02.2031 closed at 11.30/33 percent.

A bond maturing on 15.12.2032 closed at 11.50/55 percent, down from 11.60/70 percent.

A bond maturing on 01.11.2033 closed at 11.70/80 percent, down from 11.80/88 percent.

A bond maturing on 15.10.2034 closed at 11.90/12.00 percent, down from 11.95/12.05 percent. (Colombo/Sep21/2026)

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Sri Lanka’s Resus Energy commissions 2MW solar power plant

ECONOMYNEXT — Sri Lanka’s Resus Energy has commissioned a 2MW solar power plant located in Damana, Ampara, with commercial operations officially commencing on September 18, the company said in a market filing.

The renewable energy facility was developed and implemented by Resus Eastern Solar, a wholly owned subsidiary of Resus Energy.

The plant is expected to generate and supply approximately 3.5 GWh of clean energy annually to the national grid.

The commissioning further expands the company’s renewable energy portfolio while supporting Sri Lanka’s broader transition toward sustainable energy generation.

Shares closed at 8.70 rupees, down 1.14 percent. (Colombo/September21/2026)

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Sri Lanka parliamentarians visit China, South Africa for regional forums

ECONOMYNEXT – Two groups from Sri Lanka’s Parliament visited China and South Africa last week for a traditional medicine forum and the Commonwealth Parliamentary Conference.

The team participating in the 2026 Shanghai Cooperation Organisation (SCO) Forum on Traditional Medicine in Nanchang, Jiangxi Province, China were Speaker Jagath Wickramaratne, Deputy Minister of Health Hansaka Wijemuni, and Managing Director of the Sri Lanka Ayurveda Drug Corporation Marasinghege Jayalal.

Organised by the Good-Neighborliness, Friendship and Cooperation Commission of the Shanghai Cooperation Organisation and the People’s Government of Jiangxi Province, the forum brought together senior officials, health authorities, traditional medicine practitioners, experts, academics, researchers and representatives of the traditional medicine industry to promote cooperation.

Wickramaratne said there was potential for strengthened cooperation between Sri Lanka and China in traditional medicine, including in the areas of medicinal plants, scientific research, education and training, quality standards, technology and the development of safe and effective traditional medicine products.

The team also met with several Chinese investors to discuss potential investment opportunities in Sri Lanka, including investments related to rice-based products.

Separately, a Parliamentary team participated at the 69th Commonwealth Parliamentary Conference in Cape Town, South Africa.

The team comprised Deputy Minister of Mass Media Kaushalya Ariyarathna, Deputy Minister of Cooperative Development Upali Samarasinghe, Members of Parliament Sagarika Athauda, Ilankumaran Karunanathan, Sugath Wasantha de Silva, (CPwD Asia Regional Champion) and Suranga Rathnayake, Secretary-General of Parliament and Secretary of the CPA Sri Lanka Branch Kushani Rohanadeera, and Senior Parliamentary Interpreter Edirisinghe Arachchige Amarasena.

Ariyarathna chaired Workshop C of the 10th CWP Conference, examining approaches to incorporating gender equality into legislation, parliamentary procedures, committee scrutiny, budgeting and post-legislative oversight.

The CPA New Parliamentarian Award 2026 was presented to de Silva for his contribution to promoting inclusive parliamentary democracy, including advancing disability rights and inclusive governance.

Rohanadeera participated in the meeting of the Society of Clerks-at-the-Table (SoCATT), which brought together parliamentary officials from Commonwealth Parliaments to exchange institutional practices and discuss parliamentary administration and procedure. (Colombo/Sep21/2026)

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Sri Lanka stocks close lower; ASPI drops 0.37-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Monday, CSE data showed, with the benchmark All Share Price Index moving down 0.37 percent.

The ASPI was down 77.08 points at 20,979, while the more liquid S&P SL20 was down 0.39 percent, or 22.89 points, at 5,906.

Positive contributors to the ASPI were Aitken Spence (up 0.73 percent at 138.50 rupees), Nations Trust Bank (up 0.58 percent at 305.00 rupees), and HNB Life (up 2.14 percent at 143.00 rupees).

Melstacorp (down 0.96 percent at 180.75 rupees), Hatton National Bank (down 0.52 percent at 379.75 rupees), ACL Cables (down 1.92 percent at 92.00 rupees), and Access Engineering (down 1.42 percent at 76.30 rupees) were top negative contributors.

Market turnover was 750.35 million rupees. Capital goods led turnover with 154.1 million rupees, followed by food, beverage and tobacco with 110.9 million rupees.

Blue Diamonds Jewellery said Andrew Lee steppe down as chairman with effect from September 16. (Colombo/Sep21/2026)

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Sri Lanka economic summit to focus on energy transition

ECONOMYNEXT – As the country seeks to strengthen energy security while reducing its dependence on fossil fuels, the energy sector will be a key area of discussion at the Sri Lanka Economic & Investment Summit 2026, organised by The Ceylon Chamber of Commerce on 12-13 October 2026.

The session, “Beyond Fossil Dependence: Balancing Security, Sustainability, and Growth,” will examine how Sri Lanka can diversify its energy sources, accelerate renewable energy adoption and attract investment while ensuring a reliable energy supply for businesses and households.

Discussions will also consider the infrastructure and policy frameworks needed to support the country’s transition towards a modern and competitive energy system.

Edore Onomakpome – Regional Infrastructure Industry Manager – Bangladesh, Sri Lanka and Nepal, at the International Finance Corporation will keynote the session, and join the panel discussion featuring G M R D Aponsu – Secretary to the Ministry of Energy, Damitha Kumarasinghe – Director General, Public Utilities Commission of Sri Lanka, and Manjula Perera – Managing Director, WindForce.

The discussion will be moderated by Sheran Fernando – Senior Advisor, Plus94.

The session will also explore the role of public-private collaboration in developing new energy solutions, encouraging investment and creating opportunities within Sri Lanka’s evolving energy sector.

It will consider how energy policy and investment decisions can support both economic expansion and the country’s longer-term sustainability objectives.

Registrations are now open at https://sleis.chamber.lk/. For more information, contact Alikie on 011 558 8805 (alikie@chamber.lk) or Shanuka on 0701082541 (events.division@chamber.lk). (Colombo/Sep21/2026)

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